The head of the Construction Industry Federation says house prices need to rise if building new homes is to become cost-effective for builders.
Tom Parlon says it is currently not viable to build a house for the price they are reaching at market.
The comments come following the release of figures today that show that the number of planning applications and new builds are down on 2013.
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Tom Parlon, head of the Construction Industry Federation, told Newstalk's Breakfast builders are struggling to make a return on the building of houses: